Good bye, October. We won’t miss ya. The SP500 Index (SPX) daily chart shows price well below the 50dma (near 1100). Price looks to have capitulated into October 10th and then tested that low on less volume. This is a good sign.
The weekly chart shows price has not made it back up to the initial thrust of the first week of the bounce. This high needs to be taken out soon. If the internals become overbought with price below this high then another big drop may be set up. We have another couple weeks before we are in danger of becoming overbought.
The monthly chart shows two huge range monthly moves on high volume in September and October. Price is below the 50% retrace level for the October bar. Price is also well below the 12 month moving average and my guess is that it is headed back to there before any more significant downside. As always, I could be wrong.
Charts courtesy of Stockcharts.com
It think I logged over 5 miles walking since last night. I took the kids around the subdivision begging for candy last night and then around with the cub scouts on a food drive this morning. I’m becoming a regular community organizer in my old age…
Recap of recent posts:
- Natural Gas Approaching Long Term Trendline
- Gold and Energy Appear Ready for Bounce
- Value Line Arithmetic Roadmap
- Lower Volume Consolidation Day
- QQQQ Nearing Time Cycles
- Market Internals No Where Near Overbought
- Swing Charts Don’t Look Bad
- Low Volume Down Day
- New Roadmap - Dow 1929 versus Nasdaq 2000
A link to all previous Weekend Outlook posts.
Post Modified: November 3rd, 2008 at 9:21 am
Tags: Market Outlook · Standard and Poor's 500 (SP500)2 Comments
2 responses so far ↓
Andy, glad you had a good weekend with the family
Libby - Thanks. Now all I have to do is find something interesting to post for tomorrow. Not much really going on.